In actuality, PayPal would in all probability simply not permit that (since, let’s face it, this stablecoin just isn’t even pretending to be decentralized), but when getting frozen funds out of PayPal develops as a real use case for PYUSD then the advantage of the virtuous cycle of an oppressive banking system will accrue to PayPal (and the patron with the frozen funds, however to PayPal too).
